Evaluation and assessing probability of management risk, Financial Management


Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process would determine the probability of the particular event occurring against the impact the event would have on the business if the event were to occur.

Assessing Probability:

 When assessing probability of particular events occurring, a useful basis is the classification of probability into categories. 

A method of doing would be as follows:






May occur only in exceptional circumstances



Could occur at some time



Might occur at some time



Will probably occur at some time


Almost Certain

Is expected to occur in most circumstances

Posted Date: 10/1/2012 4:07:49 AM | Location : United States

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